When Shirley Green, 52, was laid off early this year after 23
years at an IT data center, she decided she wouldn't wait for
the company to rehire her. Instead, she took early retirement and
launched her own business, Personal
Records Organizer LLC, a Westminster, Colorado, consulting firm
that helps families deal with elder-care issues. The idea for the
business grew from her own experience: "I was taking care of
my mother and giving advice to people taking care of their older
parents," she says.

Although Green had no entrepreneurial background, she recognized
a niche market and decided to capitalize on it, despite her fears
of start-up. "I'd be lying if I said I wasn't sacred
spitless, but I took the leap," says Green, who will
officially open her business in September 2003 and expects to bring
in $70,000 by year-end 2004.

Green is part of a growing number of people over 50 who are
becoming entrepreneurs after long-time careers. According to Jeri
Sedlar, a New York City executive search and transition coach and
co-author with Rick Miners of Don't Retire, REWIRE!, there are
three factors driving this trend:

People are living longer and are in better health.

People are recognizing the need for additional income,
especially those forced into early retirement because of layoffs
and buyouts.

People are looking for intellectual stimulation.

Start-Up
Ideas

Want some more ideas of
businesses to start? Check out our free Start-Up Kits for dozens of step-by-step guides to
businesses in various industries.

A recent AARP
study found that 76 percent of retirees work post-retirement
because they need the money, while an equal number reported they
worked for the enjoyment of it. Joanne Fritz launched her own
business in Scottsdale, Arizona, after she was laid off as an
associate director at Elderhostel, a nonprofit educational travel
organization for seniors. "I recognized it wasn't worth
spending too much time and money in this economy-and at my age,
62-looking for another job," says Fritz, CEO of American Dream
Publishing and the Web site Not Yet Retired. "I knew I'd be better
off with my own business."

Joe McCain, 54, of Greenville, South Carolina, concurs, even
though he wasn't laid off from his sales job: "I saw the
writing on the wall. After 50, you're marked. I wanted to
control my own destiny." In 2002 McCain opened his own
location of The UPS Store, one of 13 such franchises in his metro
area. Today, the store grosses anywhere from $10,000 to $30,000 per
month.

Other retirees find they don't need to change industries;
they become consultants to the field in which they worked. A recent
study conducted by The Conference Board found that 80 percent of
companies rehire retirees as consultants. Dow Chemical regularly
hires retired technical staff as consultants. And Delphi Corp.
reports that 65 to 70 percent of the retired engineers it brings
back as consultants wind up working on projects they worked on
while employees.

Merle Meyer, 63, and his wife Linda, 60, who live in the
Louisville, Kentucky, area, owned a resort and bed and breakfast
before they retired in the early '90s. Merle was lured back
into the hospitality industry as a consultant for several years;
when he retired again, he and Linda decided to travel for a while,
but they missed the industry. Now they're back in it as interim
innkeepers, and they also run the INNterim
INNkeeper Network, a matchmaking service for interim innkeepers
and those in need of their services. "We didn't want a
full-time responsibility," says Meyer. As inn sitters, the
couple earns about $148 per day, plus traveling expenses.

Defining Your
Drivers
Not everyone is cut out to be an entrepreneur. "You have to
know what motivates you. Learning? Creativity? Accomplishment?
Recognition? That will guide you on what business, if any, is going
to make you happy," says Sedlar, who dedicates much of
Don't Retire, REWIRE! to helping readers identify what
she calls "drivers."

A post-retirement business ought to fulfill passions and
interests. "You have to love it, or you won't stick with
it through the tough times," says Fritz, who began her
post-retirement business selling on eBay, an endeavor she expected to gain more
pleasure and profits from than she actually did. That's when
she switched gears and launched her consulting firm. "Helping
other people was an important part of what was missing
before," she says.

Passion is what led Ed Metz, 68, of Montville, New Jersey, to
Bob
Crosby's Bob Cats, a Swing-era band that plays major venues
around the country. Metz had spent much of his adult life as an
investment banker. "I have always loved music. I'd been
playing in bands since I was in college," Metz says.

A jazz pianist, Metz had been with the Bob Cats for about 10
years, when bandleader Bob Crosby passed away. In 1995 he and a
now-deceased partner acquired the rights to the band name from the
Crosby family estate. When he retired from investment banking in
2000, dedicating himself to the band was a natural. Metz pulls in
about $150 per day for his role in the Bob Cats. The band earns
about $50,000 a year on a dozen or so gigs.

The Meyers were looking for a flexible schedule and an
opportunity to travel. Their interim innkeeping business serves
both needs. The couple can be selective, working when and where
they want. "For instance, in January and February we inn-sit
in San Antonio, where it's warm, and in July we go to the
Pacific Northwest, where the weather is cool," Meyer
notes.

Identifying a
Market
Knowing what you want is a good start, but it won't mean a
thing unless someone else will value what you offer. A
post-retirement business is like any other in this regard:
There's no business if there are no customers.

In fact, a built-in customer base is what attracted McCain to
his franchise. "I used Mail Boxes Etc. and The UPS Store when
I was in sales, so I was familiar with them," he notes.
"We looked at the demographics and the franchise to help me
figure out where to locate myself for maximum foot
traffic."

It was the Meyers' own experience as full-time innkeepers
that informed them about a market. "We knew innkeepers get
burned out being there 24/7. That's when a lightbulb went on.
We realized there was a major need for interim innkeepers, so
owners could have a break," explains Meyer.

Challenges

Retirees starting a business are likely to face slightly
different challenges than other entrepreneurs. Marilyn Tellez,
owner of MJT Consulting, a career coaching firm in Yakima,
Washington, specializing in people over 50, says capitalization can
be a big problem. "A lot of older people are afraid of tapping
into their retirement money or taking a loan, but the fact is, your
business won't work if you don't fund it," she
maintains.

Another issue, especially among retirees who have been forced
out early, is a lack of confidence. "People come off that
experience pretty demoralized," says Fritz. "They need to
give themselves time to build their self-esteem and psych up again
before they can start something new."

Another challenge retirees face is insufficient technical
know-how. "Learning how to use computers and software is a
must," says Tellez.

There are indications that older Americans are becoming more
computer literate. The "Consumer Internet
Barometer"-a quarterly survey by NFO WorldGroup,
Forrester Research and The Conference Board that tracks Internet
usage among Americans-found that people ages 55 to 64 with
online experience rose from 59 to 64 percent from 2001 to 2002.

Having to market a business can throw some retirees for a loop.
"I find that a lot of older women were raised to believe that
selling oneself was unseemly," Tellez says. "They have to
get beyond that in order to market their businesses."

There are many community resources where people can acquire new
skills. Community colleges, professional organizations, the chamber
of commerce, senior centers and AARP often offer classes in
everything from marketing to finance to graphics.

Planning
"Take your time and fiddle with your plan before you commit to
it," advises Fritz. A smart plan can be the difference between
success and failure.

"Seek counsel, suggests Sedlar. "Find people you
trust, and create your own little board of advisors."

Older entrepreneurs are at an advantage because they can tap
into a lifetime of professional contacts. McCain regularly speaks
to other small-business owners, including his
competition-other franchises-in his area. "We
bounce ideas off each other," he notes.

On the horizon is company-sponsored post-retirement business
planning. A number of organizations have charged their human
resource departments with the task of finding ways to assist
retirees-to-be in exploring entrepreneurial options.

"Companies are beginning to see the tangible benefits of
helping employees transition into productive retirement," says
Sedlar. "We're still a long way off from having this kind
of planning offered across the board, but at least some companies,
like Chase/J.P. Morgan and Proctor & Gamble, are taking a look
at it."

According to Sedlar, the advantages for companies include
improved fiscal and physical health for retirees, who in turn rely
on fewer costly retirement benefits. Also, companies benefit from
the retained institutional knowledge that can be sourced when
former employees open post-retirement consulting firms instead of
forgoing the industry for the fairway.

Hours &
Skills
Be prepared to work hard and tackle new challenges. With his
background in sales, McKain had no trouble marketing and
advertising his business; it was keeping the books that proved most
challenging. "It's a lot of work, and I'm still
learning," he says. "I'd never done it
before."

Sedlar suggests neophytes shadow a pro before launching their
own companies. "Just because you were good at your job
doesn't mean you're going to automatically be good at
business," she cautions.

Another surprise, especially to those who spent a lifetime
working with colleagues, is how lonely owning your own business can
be. For those working solo, Tellez recommends joining professional
organizations. "These are good places not only to network, but
also to socialize," she notes.

Another way to stay connected is to rent a shared office.
"This is good for people who are used to working around others
because it keeps them from becoming too isolated," explains
Sedlar.

Motivated by passion and money, older entrepreneurs aren't
showing any signs of fading. "We're too young to retire to
a rocking chair," Meyer says. "I don't think
we'll ever be old enough for that."

Next
Step

AARP has developed a Web site exclusively for small-business owners
over 50.